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2016-2017
Flexible Spending Accounts (FSA)
Flexible Spending Accounts (FSA) -
FSAs
provide you with an important tax advantage that
can help you pay health care and dependent care expenses on a pre-tax basis. By anticipating
your family’s health care and dependent care costs for the next year, you can actually lower
your taxable income.
Plan Carefully:
Unused balances up to $500 in your Health Care FSA will be rolled over at the
end of the plan year. Balances in your Health Care FSA above $500 will be forfeited. The
Dependent Care FSA remains a “Use It or Lose It” fund. Any unused monies in your
Dependent Care FSA at the end of the year will be forfeited.
The plan year is January 1 through December 31. Qualified expenses must be incurred during
the plan year. Expenses are considered incurred when the service is performed. Once you
make your election, you cannot change the contribution amount unless you experience a
qualified life event change. There are two unique FSA options:
Health Care FSA
- This program allows UDC employees to pay with pre-tax dollars for certain
IRS-approved medical care expenses not covered by your insurance plan. You do not need to
be enrolled in the medical plan to enroll in this benefit.
The annual maximum you may
contribute is $2,550.
This maximum is based on IRS guidelines.
Eligible Expenses Include:
Copays, Coinsurance, and Deductibles
Hearing services, including: hearing aids and batteries
Vision services, including: contact lenses, contact lens solution, eye exams and eye glasses
Dental services and orthodontia
Chiropractic services
Acupuncture
Over-the-counter (OTC) medications provided you have a prescription
Please note:
OTC rules changed January 1, 2011 as a result of Healthcare Reform. Only OTC
medications accompanied by a prescription from your provider will be eligible for reimbursement. Your
debit card will not work for these purchases.
Dependent Care FSA
– The Dependent Care FSA allows UDC employees to use pre-tax
dollars to pay for qualified dependent care, such as caring for children under the age of 13 or
caring for elders (dependent on you for their daily care).
The annual maximum amount you
may contribute is $5,000
(or $2,500 if married and filing separately) per calendar year.
Eligible Expenses include:
The cost of child or adult dependent care either inside or outside the home
The cost for an individual to provide care either in or out of his/her house
Nursery schools and preschools (excluding kindergarten)
Transit
– The Transit Account allow UDC employees to set aside pre-tax dollars to pay for
work-related mass transit expenses.
The current maximum monthly pre-tax contribution
is $255 a month for transportation ($3,060 annually).
This is subject to change
annually.
Some eligible expenses include:
Transit passes, such as: tokens, passes, fare cards, and vouchers
You may obtain information regarding your FSA and HRA balance by calling Eflex at (877) 933-
3539 or logging onto
www.eflexgroup.com .Once you log onto the website go to the login
section and select participant. You should monitor your accounts on a regular basis to ensure
funds are being paid out of the desired account.